Tata Consumer share price: The Tata group stock has been rising despite not so good Q1 FY22 results because of the high valuation of its brand business, say experts
Tata Consumer shares extended its rally intraday trade logging around 3.5 per cent gain today. The Tata group stock has been on the upside swing delivering around 8.6 per cent return to the share holders in last 5 trade sessions. However, on account of high valuations of its brand business and upcoming Super App in next five to six months, market experts are expecting further rise in Tata Consumer share price. They said that the stock may go up to ₹880 per stock levels in short-term.
Speaking on the reason for Tata Consumer share price rally; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "The stock has been rising despite not so good Q1 FY22 results because of the high valuation of its brand business. Today market is evaluating its stock price keeping its brand business in next 3-4 years in mind. Apart from this, Tata consumer's Super App is also expected to become operational in next five to six months. In this Super App, each and every product of Tata Consumer Products will be available, which will further fuel revenue of the company in long-term. So, these two fundamentals are the major reason for Tata Consumer share price rally in recent trade sessions."
Expecting more gains in Tata Consumer shares in short-term; Sumeet Bagadia, Executive Director at Choice Broking said, "Tata Consumer shares are looking positive on chart pattern. One can buy this counter at around ₹825 per stock levels for immediate target of ₹850. One can hold the counter for next target of ₹880 in short-term as well. However, while taking this position, one must maintain stop loss at ₹800."
Tata Consumer share price today opened with an upside gap of ₹2.85 per equity share and went on to make intraday high of ₹832 per stock levels — logging around 3.50 per cent gain in the intraday trade session. However, in the last 5 trade sessions, Tata Consumer share price has shot up from ₹766.40 per stock levels to ₹827.20 per share mark today (at 10:54 AM).